The pound was down against the kiwi yesterday but has picked up today after the RBNZ expressed renewed concern over the strength of the currency

The UK currency edged down against the kiwi in trading yesterday, losing just 0.1%, as weak global equities offset a poor report on the UK’s credit rating.

Sterling lost ground on Tuesday after a ratings agency said the UK was the major economy most at risk of losing its AAA credit rating.

However, after a knee-jerk sell-off in response to the comments, the pound recovered some poise after traders realised that the remarks contained no new information.

The kiwi was also struggled as risk appetite waned slightly with global equities failing to build on Monday’s gains, which dampened demand for the higher-yield currency.

This morning, the pound has recovered its losses after the Reserve Bank of New Zealand said the current high level of the kiwi dollar was not sustainable and might hinder the rebalancing of the economy after the financial crisis.